Implementing transfer rules and regulations which are aimed at maintaining the competitiveness of the division, Major League Soccer is unique in a world of football which is dictated by finance.
Spending limits and intricate roster rules have been at the heart of the MLS since the league's inception. Features including 'Discovery Rights' and the 'Designated Player' ruling have been applied, thus acting as a leveller for all clubs and ensuring that success is not simply a result of lavish spending.
Without further ado, we've taken a look at the transfer criteria the MLS has imposed.
Unlike their European counterparts, the MLS has managed to keep a lid on extortionate spending with the implementation of a salary cap.
As the years have progressed and the league has attempted to enhance its global appeal, the salary cap has been adapted and loosened to allow for star players to be imported on higher salaries.
For example in 2024, the base salary cap was set to $5.4 million, with an additional $2.55 million available in General Allocation Money and $2.4 million in Targeted Allocation Money (more details on those later).
The league will also set minimum and maximum wages for which a player can receive.
One way in which the MLS provides teams the opportunity to improve their squads is through General Allocation Money, where each club receives an annual allotment.
GAM is used to sign or retain individuals by reducing the player's salary budget charge, reducing a loan or transfer fee or conducting trades.
General Allocation Money also enables clubs to sign homegrown players.
On top of the initial allotment, teams have the opportunity to increase their GAM via a number of methods, including: converting eligible transfer revenue, trade with another MLS club, qualifying for the CONCACAF Champions Cup, failing to qualify for the MLS Cup Playoffs, the 2024 third Designated Player charge distribution and having a player selected in the 2024 MLS Expansion Draft.
Additionally, clubs can receive up to an additional $2 million in 2025 GAM if they enrol on the U22 Initiative Roster Construction Path.
On top of the General Allocation Money, the Targeted Allocation Money enables clubs to sign players whose costs exceed the Maximum Salary Budget Charge ($683,750) and has played a key role in the influx of overseas players moving Stateside.
TAM also provides clubs with the option to retain players whose wages may go above the Maximum Salary Budget Charge.
Unlike GAM, Targeted Allocation Money cannot be traded.
The Designated Player rule allows clubs to acquire up to three players whose total compensation and acquisition costs exceed the Maximum Salary Budget Charge.
A prime example of the Designated Player rule in action is Lionel Messi's move to Inter Miami, with David Beckham's outfit fronting the remainder of the costs to bring the Argentine to the Magic City.
Designated Players may be new players signed to MLS via the Discovery Process, or they may be re-signed existing players on a club's roster.
Clubs must pay a $150,000 fee to the league every year in which a third Designated Player slot is occupied on the club's roster.
The Homegrown Player rule was implemented by the MLS to encourage academy talent and ensure that a large proportion of players in the league are American.
There is no limit to the number of Homegrown Players a club may sign in any given year and they may occupy a slot on either the Senior or Supplemental Roster.
A Major League Soccer club's active roster is comprised of up to 30 players.
Up to 20 players are referred to as members of the Senior Roster and count against the club's salary budget. Clubs are permitted to have a minimum of 18 players on their Senior Roster.
The remaining slots in the squad is considered to be the Supplemental Roster and players on that do not count toward a club's salary budget. A club can have no more than 10 players on its Supplemental Roster.
When acquiring players from outside of the MLS, clubs must go through the Discovery Process and place targets on their Discovery List.
A club is permitted to have up to five players on their Discovery List, from which they can remove or add players at any time.
If one or more clubs attempt to add the same player to their respective Discovery Lists, the club that filed the claim on the earlier date will have priority to sign the player. If requests are submitted on the same day, the club with the lowest points-per-game in the MLS regular season will receive priority.
Should a club wish to sign a player on the Discovery List of another club, it may offer that club $50,000 in General Allocation Money in exchange for the right to sign the player.
If a former MLS player, who the League previously attempted but was unable to re-sign, returns to MLS, his former club will have a Right of First Refusal, meaning they have the option to sign them before their prospective club.
Right of First Refusals can be exchanged for draft picks and General Allocation Money, with performance-based clauses typically inserted to determine the amount of GAM a club will receive.
The draft is a staple of America's four major sports and the MLS is no different with the implementation of an annual SuperDraft.
Like in those sports, the MLS SuperDraft order is set by taking the reverse order of the club standings at the end of each MLS season.
Clubs will then participate in three rounds with the opportunity to sign college sophomores, Generation Adidas players (a programme which highlights the best prospective talents) and former college students who remain eligible.